GEN 2.3.2

(1) Subject to GEN Rule 2.3.5, a Person does not carry on an activity specified under paragraphs (a), (b), (c), (d), (e), (f), (g), (h), (j), (k), (p), (q), (r) and (y) of GEN Rule 2.2.2 by way of business if:
(a) the Person enters into transactions solely as a nominee for another Person and is bound to and does act on that other Person's instructions;
(b) the Person is a Body Corporate and carries on that activity solely as principal with or for other Bodies Corporate:
(i) which are within the same Group as that Person; or
(ii) which are or propose to become participators in a joint enterprise and the transaction is entered into for the purposes of or in connection with that enterprise;
provided:
(iii) for the purposes of the activities specified in paragraphs (g), (j), (k) and (r) of GEN Rule 2.2.2 the assets in question belong to a Body Corporate falling within (i) or (ii); and
(iv) for the purposes of the activities specified in paragraphs (f), (h), (p), (q) and (y) of GEN Rule 2.2.2, the activity does not involve an insurance Policyholder who is not a Group member; or
(c) the Person carries on the activity solely for the purposes of or in connection with the sale of goods or the supply of services to a customer of that Person or a customer of a member of the same Group, provided that:
(i) the supplier's main business is to sell goods or supply services and not to carry on any Financial Service; and
(ii) the customer is not an individual;
and for the purposes of the activities specified in paragraphs (g), (j), (k) and (r) of GEN Rule 2.2.2 the assets in question belong to that customer or member.
(2) A Person who is a Body Corporate does not carry on the activity specified under paragraph (d) or (e) of GEN Rule 2.2.2 by way of business, if:
(a) the Person carries on such activities as a member of an Authorised Market Institution or Recognised Body;
(b) the Person carries on such activities for its own account or for another Body Corporate which is in the same Group as the Person, provided that any such member of the Group for which the Person acts is a wholly-owned Subsidiary of a Holding Company within the Group or is the Holding Company itself;
(c) the Person restricts such activities to transactions involving or relating only to Commodity Derivatives on that Authorised Market Institution or Recognised Body;
(d) the main business of the Person is dealing in relation to Commodity Derivatives; and
(e) the Person is not part of a Group whose main business is the provision of financial services.
Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
[Amended][VER6/12-05]
Amended in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]
[Amended] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]
[Amended] DFSA RM155/2015 (Made 9th December 2015) [VER35/02-16]
[Amended] DFSA RM176/2016 (Made 19th June 2016) [VER37/08-16]
[Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]
[Amended] DFSA RM211/2018 (Made 22nd February 2018). [VER41/04-18]